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Epic Group setting up its largest facility in Odisha

EPIC Group, one of the leading apparel manufacturers based in Hong Kong and renowned for serving some of the world’s leading brands, is poised to strengthen foreign direct investment in Odisha.

Trimetro Garments India, a subsidiary of the Group, is planning to invest Rs 376.85 crore (USD 45 million) for establishing its apparel manufacturing facility in the Khurda district.

Figure: Epic Group setting up its largest facility in Odisha. courtesy: Collected

The project is likely to generate employment opportunities for 7,050 people. This state-of-the-art apparel manufacturing facility in Khurda district, will be the largest facility within the Epic Group.

EPIC Group was in the process to invest in India since the last four and half years. Earlier, it selected Ranchi (Jharkhand). The project was later called off due to Covid-19 pandemic and later it was planning to invest in MP.

In a separate development, the company also announced that its planned state-of-the-art factory in Jordan is all set to commence operations very soon, and this partnership will undoubtedly contribute to shared success with the Ad-Dulayl Industrial Zone and with its esteemed customers.

For over decades, Epic Group has been a key player in the apparel industry – first as a major textiles trading house, then as a leader in sourcing quality fabrics, and since 2005 as a state-of-the-art manufacturing company with facilities in Bangladesh, Jordan, and Ethiopia. Our evolution speaks to our core principle – to relentlessly pursue better.

Jute price is low, farmers losing interest

Last year at the beginning of the season, the price of jute raised up to Tk 3,200 per maund (1 maund=37.32kg). At the beginning of this season, the highest price was Tk 2,700 per maund. Currently the price has come down further. Farmers are losing interest in jute cultivation due to this.

Traders said that India was the main importer of Bangladeshi jute last year. The demand for both jute yarn and raw jute from India has decreased. And locally, the use of jute ‘chat’ and sacks is decreasing. Plastic products are taking place of jute. Due to these reasons, the price of jute has decreased compared to last year.

Figure: Farmers are losing interest in jute cultivation due low price.

Talking to the jute farmers, it is known that per bigha of land (1 bigha=1337.80 square meter) costs about Tk 29,000 to grow 8 to 10 maund of jute on an average. The price of the best jute in the market is Tk 2,400 taka. According to that per bigha jute cultivation is causing a loss of five thousand taka per bigha.

Analyzing the data from the Baneshwar market of Puthia in Rajshahi, Ghior jute market in Manikganj and Rajbari jute market, almost the same figures obtained.

Basically, the price of jute has decreased due to two reasons, firstly-the global recession has reduced the export of jute to Turkey and India, the major importer of Bangladeshi jute, and secondly-due to the water crisis, the quality of jute has deteriorated. Apart from these, many local traders are not buying jute this time as government jute mills have been declared closed. This also has reduced the price of jute in the market.

Mizanur Rahman, Chief Jute Inspector of Faridpur Jute Directorate, said, “There was not enough water in many areas to rot jute this year. This worsens both the color and quality of jute. If the quality is not good, jute cannot be exported abroad. Again, due to the Russia-Ukraine war, jute exports have decreased a lot. Due to this, jute could not be exported abroad as expected.”

Abul Kalam Azad, Deputy Director of Rajbari District Agriculture Extension Department, said that the global recession is one of the reasons for the low price of jute. Apart from this, the quality of jute is also a big issue. Currently, the best jute in the market is being sold at Tk 2,500 per maund. But such jute is very few.

Talking to the farmers of these regions, it is known that jute was sold for Tk 3000 per maund last year. The cost has increased this year as prices of fertilizers and medicines and wages of workers have increased and for this the price of jute should be higher than the previous year. However, adequate water was not available to rot the jute properly. Due to water crisis, both the color and quality of jute is hampered in this season.

Again, due to water shortage, many jute farmers sold jute from the land. As a result, some seasonal jute traders emerged overnight who started buying jute directly from the land and renting ponds to rot and sell the jute. These new traders also suffering losses.

However, the jute fiber in Jessore region is good, but the sudden fall in the price of jute has worried the farmers. Though, in this region too, farmers had to face adverse weather conditions at the beginning of cultivation. Jute seeds had to be sown with irrigation due to lack of rain, and occasional irrigation during drought, which increased cost. But jute was sold at Tk 2,500-2,600 at the beginning of the season, and now it is selling at Tk 1,900-2,000 per maund.

According to the tenants of huts, farmers and jute traders, the demand for jute has decreased along with the closure of the government jute mills. As a result, local jute traders reduced buying jute.

All in all, jute growers are disappointed in this season. Due to losses, many farmers are losing interest in cultivating jute for the next season. Again, many jute farmers have taken loans, which have to be repaid by selling them. Concerned persons claimed that if the consumption of jute products increases, the demand and prices will increase as well and this will encourage farmers further to cultivate more jute.

What’s been going on in Sustainable Fashion this week?

Sustainable fashion is the concept of creating fashion items in a way that reduces the environmental impact and promotes social responsibility throughout the whole production process. It aims to create fashion items that are environmentally friendly, socially responsible, and economically viable.

What’s been going on in Sustainable Fashion this week? Here it is:

1) Nominations for The Earthshot Prize have been announced, including US-based Circ®, who have developed a ground-breaking solution to enable the recycling of polycotton fabrics. Next up is Colorifix Limited, a UK company that has identified genetic codes for colour in the natural world to create sustainable dyes that reduce the fashion industry’s use of water and harmful chemicals.

2) eBay UK and British Fashion Council have announced the launch of their second Circular Fund – which provides funding to support fashion business models that reduce waste in that sector. Last years winner of the first fund was the fabulous Layla Sargent at The Seam.

Courtesy: Collected

3) Textile ExchangeThe Fashion Pact & Conservation International have collaborated on a new report to highlight how fashion, textile and apparel companies can reduce their impact on biodiversity. ‘The Biodiversity Landscape Analysis Report’ highlights the importance of protecting and restoring nature, given than more than a third of raw materials come from land-based eco-systems.

4) Gucci have won the Ellen MacArthur Foundation Award for #CircularEconomy at the 2023 Sustainable Fashion Awards in Milan, for designing its garments to be used more, remade and recycled. The brands ‘Denim Project’ incorporates regeneratively-grown cotton from Spain, combined with re-spun post-consumer recycled fibres.

5) The global wearable devices market is primed to reach $62.82 billion by 2025. Wearable payments tech pioneer DIGISEQ Limited, has partnered with ekko, the global embedded sustainability fintech, bringing ekko’s carbon tracking, offsetting and positive planet impact platform to consumers using DIGISEQ enabled wearable devices. Customers can choose to act positively through their wearable transaction, such as carbon offsetting, saving plastic bottles from entering oceans, or reforestation around the world.

6) The UK arm of ethical fashion brand People Tree has gone into liquidation. Sustainable brand Thought Clothing has also reportedly fallen into administration.

7) Samsøe Samsøe have launched ‘Blue Belief’ – their low impact denim range. All of its styles have been made from high-quality materials, with 75% less water, energy and chemicals than used in traditional denim manufacturing. Even the smallest details are made responsible, as pieces are finished off with recycled polyester for the trims as well as the back patches.

8) Urban Outfitters has opened a pop-up in London, showcasing its latest denim collection BDG. The pop-up also includes a ‘Swop-Shop’, where customers can swop any old pair of jeans for a new pair of BDG jeans for free. The returned jeans will be reused through ‘Urban Renewal’, ReWorked through repair or redesign, or recycled through their partnership with Upcycle Labs.

Shasha Denims becomes a global supplier of Renewcell

Shasha Denims Ltd has become one of the 47 global suppliers of Renewcell, the leading firm in the world for chemical recycling of textile waste that has RCS certification denoting compliance with the Recycled Claim Standard.

Recycling with Renewcell prevents greenhouse gas emissions from incineration and landfills. It also decreases land, water and energy use in the production of new textiles.

Figure:Shasha Denims Ltd has become one of the 47 global suppliers of Renewcell. Courtesy: collected

Shasha Denims Ltd began its journey with a vision to create a global standard in the green and sustainable denim manufacturing industry. 

A partnership between Shasha Denims Ltd and Renewcell shows how important to reduce textile waste, bringing sustainability to the denim industry, and its impact for Shasha denim.

About the partnership, Shams Mahmud, Managing Director, Shasha Denims Ltd said, “With our in-house sustainability program called Balance, we are striving to make a difference in the textile industry landscape in Bangladesh.”

In November last year, Renewcell opened Renewcell 1, it’s first-ever industrial-scale chemical textile-to-textile recycling facility in Sundsvall, Sweden. The company dispatched the first shipment of Circulose dissolving pulp produced at the facility a month later. Renewcell 1 will scale up to produce 120,000 metric tons of pulp, equivalent to 600 million T-shirts.

Renewcell is ramping up efforts to bring Circulose to market as a certified and traceable ingredient.

Also entered into an agreement with TextileGenesis to implement full traceability for Circulose across the entire textile supplier chain.

TextileGenesis technology allows Renewcell to share real-time digital traceability with all Circulose customers and supply chain partners using digital tokens that guarantee a secure chain of custody from scrap to retail.

Recently, Renewcell announced the launch of the Circulose Supplier Network (CSN), a group of 47 ‘early adopters’ in 12 countries with first access to production-ready volumes of the circular raw material.

Circulose is derived from the cellulose found in worn-out clothing and transformed into a dissolving pulp made from 100 percent recycled textiles. The pulp serves as the foundation for different types of regenerated fibers, including viscose, lyocell, modal, acetate, and other man-made cellulosic fibers.

Patrik Lundström, Renewell CEO said, “The implementation of the Circulose Supplier Network is integral to continue scaling the Circulose product, and with availability across the textile supply chain, fashion brands now have numerous circular options to design and create clothing with Circulose.”

Collaboration, access to finance required for RMG’s green transition: Experts

The apparel industry needs collaboration among buyers, manufacturers, development partners, and the government to get access to finance for its green transition, said experts, including representatives of local entrepreneurs and international fashion brands, at a Dhaka event on Wednesday (4 October).

At various plenary sessions at the first-ever Bangladesh Climate Action Forum 2023, organised by the Bangladesh Apparel Exchange (BAE), they also said collaboration involves more than just sharing ideas; funding is essential to completing the full cycle of green transition projects.

“As a brand, we say our designers, once they have designed a product, always think about recycling and organic material. In 2021, we reduced the use of plastic in packaging by thickening them,” said Shafiur Rahman, South Asian Operation Head of G-Star Raw, at the plenary session, titled “Decarbonisation: The Opportunity and Challenges of the Bangladesh RMG Industry”. 

Their vendors are already producing solar energy and have been using natural light since then, he added.

“We are ensuring good purchasing techniques to create fundamental financial freedom for the manufacturers so that they can conduct something beyond business,” he further said.

In the plenary session, “Policy Landscape and Improvements to Facilitate Change”, Nafis Ud Doula, director of Impress-Newtex Composite Textile, highlighted the need for funding in the processes of decarbonisation, solar implementation, rainwater harvesting, and greening the industry.

“There are so many institutions that provide funds, but the main challenge is accessing the funding. The case is much tougher for SMEs.”

Nafis Ud Doula said buyers and the government, moreover, should provide support in this area. For example, the government should give a waiver of around 2%–5% in the income tax of green RMG units, and buyers can ensure ethical practice by providing fair prices.

“Bangladesh is one of the most climate-vulnerable countries but is doing amazing work in terms of green building and sustainable industry. Now retail consumers should perform good purchasing practices,” he added.

Gihan Palihena, director (Asia Product Supply – South Asia) of Kontoor Brands Inc, said Bangladesh is doing very well in the green transition.

“Bangladesh needs definite policies and frameworks to accelerate the green transition. Though Bangladesh has the highest number of LEED green factories, the large number is yet to go green,” he added.

So the term ‘green factories’ should be initiated as a policy in the country, he also said.

Shahidullah Azim, vice president of the Bangladesh Garment Manufacturers and Exporters Association, said the RMG industry, which has already made unparalleled advancements in the green transition, is considered a global model of a green manufacturing hub.

“In Bangladesh, 400,000 tonnes of pre-consumed textile waste are produced every year. We are urging all buyers, manufacturers, and the government to work together to make Bangladesh a recycling hub,” he added.

Buddhi Paranamana of PDS Limited called for maximising transparency and incentivising the green transition process.

Ambreen Tabassum of Decathlon Bangladesh stressed the need to educate all parties regarding decarbonisation and green transition.

Azizur Rahim Chowdhury, managing director of JM Fabrics, sought to introduce OSS for all licences they need, as they have to fall into the red trap of licencing or renewing any licences, roughly having to go through 23 separate departments for 23 licences.

State-owned non-banking financial institute IDCOL Executive Director and CEO Alamgir Morshed said the institute is financing for the long term; in some cases, payback time is not less than six to seven years. “Considering its risks, we sought a guarantee from some development partners on the back of our investment.”

“We face challenges today in the overall financial sector of the country because of interest rates in long-term local currency financing,” the CEO said, adding that considering climate vulnerability, it requires $200 billion in the next 10 years, of which about $15 billion is needed every year as per the ambition of the government.

It is not possible to raise the fund alone by the government, a development partner, or only domestic resources. It requires collaboration among all stakeholders, including the private sector. “The role of the bond and capital markets is most important to mobilise such kinds of funds; a lot of work is going on to revive the market.”

Shin Shin Group Managing Director Sadat Sohel said the group has not got access to the green fund two years after beginning production in the factory.

He also mentioned that in some cases of financing for solar panel installation, they get it within six months of the loan application, while the documentation process also takes another six months.

Speaking as chief guest at the opening session, State Minister of Foreign Affairs Shahriar Alam said in FY22, Bangladesh incurred losses worth $11 billion, or 2.4% of GDP, due to the natural disasters, which might be increased to 2% of GDP by 2050.

“To mitigate the impact of the disasters, the government raised the first climate change funds through its own resources under the Climate Change Action Plan. In addition, development partners’ financial support is needed for the country,” he added. 

Blue Planet Group’s new Activewear unit to boost high-end apparel export

In the world of activewear, a new player is on the block. Bangladesh is experiencing a rapid increase in the demand for activewear as more people are becoming health and fitness conscious every day.

Bangladesh-based one of the largest apparel exporters Blue Planet Group officially inaugurated their new Activewear manufacturing facility Colour & Co. on 30 September 2023 under the patronage of higher officials of Rupali Bank and BPG. This endeavor will boost the country’s high-end apparel export.

Figure: Blue Planet Group’s new Activewear unit to boost high-end apparel export.

Considering the international fashion trends Colour & Co. will make their products comfortable and suitable as per the demand. They want to keep innovating and adding new technologies to their products that will meet the customers’ desires on a regular basis.

The inauguration event was graced by the presence of Rupali Bank Chairman Kazi Sanaul Hoq, Managing Director and CEO Mohammed Jahangir, Deputy Managing Director Kazi Abdur Rahman, General Manager Abu Naser Mohammad Masud and Tanvir Hossain Moin.

To mark this new journey, a set of trees were planted by the distinguished guests. Following that, the Chairman of Blue Planet Group Arifur Rahman guided the visitors throughout the facility to showcase the ultra-modern infrastructure designed to produce world-class Sportswear apparel.

The chief guests and BPG Chairman addressed the Colour & Co employees ensuring their commitment to the growth of the organization and wellbeing of the employees.

Soon after the speeches, the program came to a delightful end with a special lunch being served to the guests and 8000 employees of BPG.

BGMEA calls for govt policy support to weather challenges of RMG sector

A decrease in garment exports has impacted the country’s foreign reserves, said BGMEA President Faruque.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) called for government policy support to deal with the challenges of the RMG sector.

A BGMEA delegation, led by President Faruque Hassan, held a meeting with Dr Md Khairuzzaman Mozumder, Secretary of the Finance Division at the Ministry of Finance, on 3 October at the secretariat.

The delegation comprised BGMEA Senior Vice President SM Mannan (Kochi) and Vice President Rakibul Alam Chowdhury.

The meeting revolved around pressing issues concerning the country’s readymade garment industry, its potential, and the vision to sustain growth and development.

During the meeting, President Faruque Hassan pointed to the profound impact of the Russia-Ukraine conflict on the global economy, which has presented a significant challenge for the readymade garment industry of Bangladesh.

The repercussions of the Russia-Ukraine war have led to severe inflation in the USA and EU countries and demand for apparel in key export markets like Europe and America has declined as consumers prioritize essential items such as food and fuel over clothing. This has resulted in decline in garment exports to Europe and the USA.

This decrease in garment exports, which constitutes over 84% of Bangladesh’s total export earnings, has impacted the country’s foreign reserves.

Recognising the magnitude of these challenges, President Faruque Hassan emphasised the necessity for government policy support to navigate these troubled times and maintain competitiveness in the global market.

He underscored the industry’s increasing focus on diversifying into non-cotton products including man-made fiber (MMF) based garments, given their high demand globally, and urged the government to encourage and facilitate this shift through policy support.

Faruque Hassan highlighted the industry’s commitment to environmental sustainability, including efforts in developing the capacity of recycling and promoting a circular economy.

He stressed the need for government support to advance recycling and circularity within Bangladesh’s garment industry.

In addition to these concerns, the delegation called for easier and faster services from the banking sector for the RMG industry.

Apparel buyers push factories for green initiatives: CPD study

European diplomats raise questions about minimum wage for RMG workers

Photo: CollectedPhoto: Collected

Garment and textile manufacturers are facing pressure from buyers to take green initiatives at their factories to make them more environmentally friendly. Initially, however, they took green initiatives out of their own motivation, according to a new study by the Centre for Policy Dialogue (CPD).

The report mentioned that, in some cases, owners are also motivated to take green initiatives due to their marketing strategies.

The CPD unveiled the findings of the study “Securing Green Transition of the Textile and Readymade Garments Sector in Bangladesh” during an event at a Dhaka hotel on Tuesday.

The report found that 69.70% of entrepreneurs invested in green initiatives based on their self-motivation, while the second highest number of entrepreneurs invested due to buyers’ requirements.

Besides, 54.55% of entrepreneurs have taken such initiatives due to their marketing strategy, and 39.39% made it to make them competitive in the market, according to the study report presented by CPD’s Research Fellow Muntaseer Kamal.

Speaking with The Business Standard, he said, “During the study, we found that entrepreneurs are motivated to green their factories for a variety of reasons.”

The study also mentioned that the average green investment in a factory in the last five years stood at Tk78.07 million in large factories, which is 36.98% of their total investment, while it is about Tk0.16 million in micro factories, which is 53.99% of their total investment.

However, the green initiative cost stood at Tk1.37 million for small and medium factories, which is 44.84% of their total investment, according to the report.

The study also recommended developing a common framework for green standards and certification procedures based on international best practices and market requirements.

“All firms would adhere to the same environmental benchmarks with a uniform standard. Moreover, a uniform certification procedure would make it easier and less costly for factories to obtain green certifications required by various buyers,” said Muntaseer Kamal.

Buyers’ consensus on green standards and certifications should be in place, he added.

CPD Executive Director Fahmida Khatun, who chaired the session, said, “RMG factories are receiving various certifications from different organisations due to buyers’ requirements, but there are different standards in the certifications, which increases their cost.”

She said, considering the importance of green initiatives, over 200 Bangladeshi factories have achieved Leadership in Energy and Environmental Design (LEED) certificates from the US Green Building Council.

“In some cases, a number of buyers do not recognise the USGBC LEED (US Green Building Council’s Leadership in Energy and Environmental Design) certificates,” she added. “We want to see green initiatives from economic, social, and environmental approaches,” she added.

Shahidullah Azim, vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the RMG industry has already made unparalleled advancements in the green transition, and they are considered a global model of a green manufacturing hub.

“We want to continue this momentum towards excellence. The RMG industry is already under intense surveillance, but to make it more comprehensive for the wider economy, I think the approach should be ‘Securing the Green Economy’ and get the broader stakeholders on board,” he added.

At the event, State Minister for Planning Shamsul Alam suggested that manufacturers demand fair prices from brands and buyers to accelerate the greening process in the RMG sector.

“By enforcing, formulating regulations, directing, and suggesting, the government can assist the greening process,” he said, adding that they are emphasising renewable energy.

He also said green, sustainability, labour rights, and related issues will be included in the 9th Five-Year Plan.

European diplomats raised questions about the minimum wage

European diplomats attending the event said the Tk8,000 minimum wage, instituted for garment workers around five years ago, is not enough to lead a healthy life.

EU Ambassador Charles Whitely highlighted that it had been five years since the last wage revision in the garment sector, where the minimum pay was fixed at Tk8,000. 

“By any stretch of the imagination, it isn’t a very healthy way to live on that salary, particularly if you have kids to feed,” he added.

Whitely said the responsibility is not solely on the government or the industry but also on brands and buyers, urging real engagement and partnerships to address the challenges faced by workers.

“So the onus is not only on the government or the industry; it’s also on brands and buyers, and there are excellent examples of real engagement and partnership amongst brands,” he noted. Referring to a UN report, Charge D’Affaires at the Netherlands Embassy in Bangladesh, Thijs Woudstra, said, “Bangladesh [should] move away from the ‘low wage trap’ when graduates [from LDC status].”

“There are no alternatives to improving working conditions and wages,” remarked Thijs Woudstra, highlighting the imperative for a comprehensive reassessment of labour policies in the sector.

Both said the issues regarding fair wages and working conditions for RMG workers – numbering around 4.5 million – needed to be addressed.

সেপ্টেম্বরে রপ্তানি আয় বেড়েছে ১০ শতাংশ

চলতি বছরের সেপ্টেম্বরে বাংলাদেশের রপ্তানি আয় ১০ দশমিক ৩৭ শতাংশ বেড়ে ৪.৩১ বিলিয়ন ডলার হয়েছে।

চলতি বছরের সেপ্টেম্বরে বাংলাদেশের রপ্তানি আয় ১০ দশমিক ৩৭ শতাংশ বেড়ে ৪.৩১ বিলিয়ন ডলার হয়েছে।

আজ রপ্তানি উন্নয়ন ব্যুরো থেকে এ তথ্য জানা গেছে।

রপ্তানি আয় বৃদ্ধির জন্য বিশেষজ্ঞরা গার্মেন্টস পণ্যের রপ্তানি বৃদ্ধিকে মূল কারণ বলে মন্তব্য করছেন।

রপ্তানি উন্নয়ন ব্যুরোর তথ্য অনুযায়ী, চলতি অর্থবছরের জুলাই-সেপ্টেম্বর প্রান্তিকে রপ্তানি আয় ৯ দশমিক ৫১ শতাংশ বেড়ে ১৩.৬৮ বিলিয়ন ডলারে দাঁড়িয়েছে।

সরকার চলতি অর্থবছরে ৬২ বিলিয়ন ডলারের পণ্য রপ্তানি লক্ষ্যমাত্রা নির্ধারণ করেছে সরকার।

গত অর্থবছরে বাংলাদেশের রপ্তানি আয় ছিল রেকর্ড ৫৫.৫৬ বিলিয়ন ডলার।

SAC launches MCAP to reduce CO2 emissions by textile and apparel industry

The Sustainable Apparel Coalition (SAC), a global coalition has unveiled the Manufacturer Climate Action Program (MCAP) during the 2023 SAC Annual Meeting held in Massachusetts.

SAC comprised over 280 stakeholders including retailers, brands, manufacturers, governments, academics, and non-profit partners.

In collaboration with industry giants NIKE and Target Corporation, SAC has introduced MCAP as an important element of its Decarbonization Program, aimed at galvanizing support and propelling the textile and apparel industry towards significant reductions in CO2 emissions, which are urgently required.

Figure: SAC launches MCAP to reduce CO2 emissions by textile and apparel industry. 

Regarding this, Amina Razvi, CEO, SAC said, “The textile and apparel industry is responsible for a substantial portion of global greenhouse gas emissions. MCAP’s mission is to empower manufacturers, both SAC members and non-members, to measure emissions, set science-aligned targets for Scope 1 and 2 emissions, and accelerate their decarbonization efforts.”

The textile and apparel sector is facing an imminent imperative to collectively reduce global CO2 emissions by 45% by 2030, based on the 2010 baseline, with the ultimate goal of achieving net-zero emissions by 2050.

Joyce Tsoi, Director of Collective Action Programs, SAC said, “Through our Decarbonization Program, we co-create solutions and foster collaborations necessary for systemic change within global supply chains, recognizing that addressing this challenge requires that no single entity can tackle this challenge alone.”

MCAP represents a key initiative, uniting manufacturers globally to accelerate action towards science-aligned emissions targets, significantly reducing global CO2 emissions at scale. By partnering with industry leaders and offering scalable solutions, we can empower our industry to confront emission reductions and instigate the change we need to support low-carbon transition, she added.

Notably, MCAP does not include measurements for Scope 3 emissions, as these often pose obstacles for manufacturers when it comes to setting science-aligned targets. By initially focusing on Scope 1 and 2 emissions, the program aims to offer manufacturers a manageable entry point for their decarbonization efforts.

This program is expected to empower manufacturers to reduce energy consumption, realize cost savings, and meet the environmental expectations of their customers. Additionally, it seeks to promote the exchange of knowledge and the rapid adoption of best practices. Overall, MCAP underscores SAC’s commitment to preserving the planet for future generations.

MCAP will take a pragmatic approach, providing a stepwise process to build manufacturers’ capability to accelerate target setting, and comprises four core elements. Those are:  

  1. Manufacturers set, validate, and disclose company-wide science-aligned emission reduction goals, recognizing this as a fundamental step toward a sustainable future. 
  2. Manufacturers receive recommendations and training on developing climate risk assessments for their operations, including physical and transition risks, documenting these risks to bridge connections with value chain partners, including brands. 
  3. Manufacturers receive guidance for developing their decarbonization plans, responding to the industry’s growing call for transparency and enabling effective allocation of investments and resources.
  4. Fostering a culture of transparency and accountability, MCAP encourages manufacturers to annually disclose their progress and share reports publicly. This commitment to openness will ensure accountability within organizations and nurture a collective culture of growth and innovation. 

These four elements form the core of MCAP, empowering manufacturers to take substantive actions in reducing emissions to combat climate change, improving operational efficiency and growth, and further advancing sustainability throughout the industry.

MCAP evolved from both Target’s Supplier Engagement Program and the Supplier Climate Action Program (SCAP), which was co-developed by NIKE and its suppliers and in consultation with World Resource Institute (WRI).

MCAP is open to both SAC members and non-members, in a concerted effort to accelerate the number of manufacturers with science-aligned targets. The program meticulously integrates key management tools into the program, tailored specifically to meet the unique needs of manufacturers.

These tools include guidance on measuring emissions, assessing risk, benchmarking performance, and leveraging these insights to inform strategic planning.

By establishing these fundamental building blocks, MCAP equips manufacturers with the essential resources they need to develop effective plans and accelerate meaningful climate change actions.

Noel Kinder, Chief Sustainability Officer, at NIKE, Inc, said, “At our size and scale, we have a responsibility to drive impact. With a challenge like climate change, we know we can’t do it alone. NIKE’s SCAP was designed to help suppliers take a leadership role in addressing their climate risk. Working with SAC and Target to develop the MCAP program is the next step in scaling impact across NIKE’s supply chain and the industry.”

Liz Cook, Executive Vice President for Governance & Development, at World Resource Institute (WRI), said“Supply chain emissions amount, on average, to more than 70% of a company’s greenhouse gas (GHG) emissions. To set, and achieve, ambitious emissions reduction targets across the value chain, companies need to support their suppliers. Beyond MCAP, WRI is pleased to partner with NIKE to accelerate renewable energy solutions in strategic global markets — a key strategy for achieving these objectives. This work is critical to scaling climate action globally.”

The SAC is actively gathering manufacturer interest in MCAP and plans to begin program implementation in 2024. MCAP represents a significant step forward in the global effort to combat climate change.

As part of its strategic plan, the SAC acknowledges that the textile industry alone accounts for up to 8% of global carbon emissions and is committed to a minimum 45% reduction of GHG emissions by 2030. The SAC is committed to supporting its members and the industry in achieving decarbonization.

RMG BANGLADESH NEWS